Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2013-11-14/under-armour-to-buy-fitness-technology-company-for-150-million

Bloomberg News

Under Armour Buying MapMyFitness in $150 Million Deal (2)

November 14, 2013

Under Armour Inc. (UA:US) agreed to buy MapMyFitness Inc. for $150 million as the maker of athletic apparel looks to compete with Nike Inc. (NKE:US) in offering fitness buffs a way to measure their training and performance online.

MapMyFitness, founded in 2007, designs applications that allow athletes to record and share their workouts using global-positioning technology, according to a statement from Under Armour. Closely held MapMyFitness has about 20 million registered users worldwide, who can measure their training on more than 400 devices, sensors and wearables.

As consumers embrace fitness and technology, sports apparel makers are looking for ways to combine the two. Nike offers apps that work with devices powered by Apple Inc. (AAP:US) and Google Inc. and currently controls 15 percent of the market among such users, while Austin, Texas-based MapMyFitness has about 5 percent, Piper Jaffray Cos. analysts said in a note.

“MapMyFitness products are device agnostic and it makes Under Armour an immediate leader in the fitness tracking space,” Sean Naughton, a Piper Jaffray analyst, wrote in the note. He has a neutral rating on Under Armour’s stock.

Runners and cyclists can use MapMyFitness to plot a training route in locations all over the world by entering their time and speed, while calculating the calories burned. They can also share their own progress with friends.

Under Armour will finance the acquisition initially under its existing revolving credit facility and cash on hand. The deal is expected to close by the end of the year.

“This partnership is about Under Armour enhancing our digital expertise to drive the future of performance innovation for the global athlete community,” Kevin Plank, Under Armour’s founder and chief executive officer, said in the statement.

Under Armour, based in Baltimore, rose 1.1 percent to $83.53 at the close in New York. The shares have gained 72 percent this year.

To contact the reporter on this story: Minsi Chung in New York at mchung82@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus